RTX CORP (RTX) Stock Fundamental Analysis
NYSE:RTX - New York Stock Exchange, Inc. - US75513E1010 - Common Stock - Currency: USD
Overall RTX gets a fundamental rating of 4 out of 10. We evaluated RTX against 65 industry peers in the Aerospace & Defense industry. RTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. RTX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
Of the past 5 years RTX 4 years were profitable.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
RTX has a Return On Assets of 2.86%. This is comparable to the rest of the industry: RTX outperforms 50.00% of its industry peers.
RTX has a better Return On Equity (7.72%) than 60.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.82%, RTX is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RTX is below the industry average of 7.61%.
The last Return On Invested Capital (4.82%) for RTX is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 7.72% | ||
| ROIC | 4.82% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
1.3 Margins
RTX has a Profit Margin of 5.97%. This is in the better half of the industry: RTX outperforms 60.94% of its industry peers.
RTX's Profit Margin has declined in the last couple of years.
The Operating Margin of RTX (7.85%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RTX has declined.
RTX has a Gross Margin of 19.21%. This is in the lower half of the industry: RTX underperforms 60.94% of its industry peers.
In the last couple of years the Gross Margin of RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 5.97% | ||
| GM | 19.21% |
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RTX is destroying value.
RTX has less shares outstanding than it did 1 year ago.
RTX has more shares outstanding than it did 5 years ago.
RTX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.01 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.01, RTX is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
The Debt to FCF ratio of RTX is 5.79, which is a neutral value as it means it would take RTX, 5.79 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.79, RTX is doing good in the industry, outperforming 71.88% of the companies in the same industry.
RTX has a Debt/Equity ratio of 0.64. This is a neutral value indicating RTX is somewhat dependend on debt financing.
The Debt to Equity ratio of RTX (0.64) is worse than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.48
WACC9.94%
2.3 Liquidity
RTX has a Current Ratio of 0.99. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
RTX's Current ratio of 0.99 is on the low side compared to the rest of the industry. RTX is outperformed by 84.38% of its industry peers.
A Quick Ratio of 0.73 indicates that RTX may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, RTX is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.15%, which is quite good.
Measured over the past years, RTX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.90% on average per year.
RTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.82%.
RTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.71% yearly.
EPS 1Y (TTM)9.15%
EPS 3Y13%
EPS 5Y-7.9%
EPS Q2Q%16%
Revenue 1Y (TTM)17.82%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Sales Q2Q%6%
3.2 Future
The Earnings Per Share is expected to grow by 7.34% on average over the next years.
RTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.91% yearly.
EPS Next Y11.49%
EPS Next 2Y10.5%
EPS Next 3Y11.03%
EPS Next 5Y7.34%
Revenue Next Year7.5%
Revenue Next 2Y6.76%
Revenue Next 3Y6.52%
Revenue Next 5Y4.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.74, which indicates a rather expensive current valuation of RTX.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than 79.69% of the companies in the same industry.
RTX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.58.
The Price/Forward Earnings ratio is 20.25, which indicates a rather expensive current valuation of RTX.
RTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RTX is cheaper than 75.00% of the companies in the same industry.
RTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than 68.75% of the companies in the same industry.
96.88% of the companies in the same industry are more expensive than RTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.81 | ||
| EV/EBITDA | 19.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.98
PEG (5Y)N/A
EPS Next 2Y10.5%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 2.00%.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.34. RTX pays more dividend than 90.63% of the companies in the same industry.
RTX's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
The dividend of RTX decreases each year by -2.37%.
RTX has been paying a dividend for at least 10 years, so it has a reliable track record.
RTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-2.37%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
RTX pays out 67.44% of its income as dividend. This is not a sustainable payout ratio.
DP67.44%
EPS Next 2Y10.5%
EPS Next 3Y11.03%
RTX CORP
NYSE:RTX (1/27/2025, 11:29:05 AM)
124.855
-0.45 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners86.27%
Inst Owner Change0.13%
Ins Owners0.07%
Ins Owner Change-0.81%
Market Cap166.18B
Analysts68.97
Price Target134.98 (8.11%)
Short Float %0.86%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend2.32
Dividend Growth(5Y)-2.37%
DP67.44%
Div Incr Years31
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)7.07%
Max EPS beat(2)7.78%
EPS beat(4)4
Avg EPS beat(4)6.32%
Min EPS beat(4)2.68%
Max EPS beat(4)7.78%
EPS beat(8)8
Avg EPS beat(8)5.55%
EPS beat(12)12
Avg EPS beat(12)5.72%
EPS beat(16)16
Avg EPS beat(16)6.31%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.21%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)1.32%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)3.8%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)6
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)0.47%
PT rev (3m)9.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 20.25 | ||
| P/S | 2.1 | ||
| P/FCF | 22.81 | ||
| P/OCF | 16.12 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.26 |
EPS(TTM)5.49
EY4.4%
EPS(NY)6.17
Fwd EY4.94%
FCF(TTM)5.47
FCFY4.38%
OCF(TTM)7.75
OCFY6.2%
SpS59.38
BVpS45.92
TBVpS-20.14
PEG (NY)1.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 7.72% | ||
| ROCE | 5.51% | ||
| ROIC | 4.82% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 29.87% | ||
| OM | 7.85% | ||
| PM (TTM) | 5.97% | ||
| GM | 19.21% | ||
| FCFM | 9.22% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
ROICexc(3y)3.63%
ROICexc(5y)3.44%
ROICexgc(3y)18.07%
ROICexgc(5y)15.36%
ROCE(3y)3.92%
ROCE(5y)3.74%
ROICexcg growth 3Y26.39%
ROICexcg growth 5Y8.32%
ROICexc growth 3Y23.21%
ROICexc growth 5Y2.25%
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 70.56% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.29% | ||
| Profit Quality | 154.43% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.01 |
F-Score7
WACC9.94%
ROIC/WACC0.48
Cap/Depr(3y)64.56%
Cap/Depr(5y)64.59%
Cap/Sales(3y)4.11%
Cap/Sales(5y)4.14%
Profit Quality(3y)118.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.15%
EPS 3Y13%
EPS 5Y-7.9%
EPS Q2Q%16%
EPS Next Y11.49%
EPS Next 2Y10.5%
EPS Next 3Y11.03%
EPS Next 5Y7.34%
Revenue 1Y (TTM)17.82%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Sales Q2Q%6%
Revenue Next Year7.5%
Revenue Next 2Y6.76%
Revenue Next 3Y6.52%
Revenue Next 5Y4.91%
EBIT growth 1Y92.97%
EBIT growth 3Y19.98%
EBIT growth 5Y4.36%
EBIT Next Year36.72%
EBIT Next 3Y18.27%
EBIT Next 5Y11.94%
FCF growth 1Y138.81%
FCF growth 3Y42.24%
FCF growth 5Y1.15%
OCF growth 1Y82.23%
OCF growth 3Y29.78%
OCF growth 5Y4.51%